Story perspectives

Iraq, US, Syria to Revive Kirkuk-Baniyas Oil Pipeline

7/12/2026

Summary

Iraq Revives Pipeline

Iraq, U.S. and Syria will announce reviving the Kirkuk-Baniyas pipeline—built in 1952 with 300,000-bpd capacity—at a White House meeting with President Donald Trump in July 2026.
U.S. firms TI Capital and Chevron with a Qatari partner will study a rebuild that could take two to three years.
The pipeline would let Iraq export oil via the Mediterranean, bypassing the Strait of Hormuz where Iran charges crypto tolls $2 million per supertanker.

Summary

Turkey Seeks Renewal

Turkey's Minister Alparslan Bayraktar said the 12-month Kirkuk-Ceyhan renewal will be signed soon.
OPEC+ approved a fifth August increase of 188,000 barrels per day, with the Kirkuk-Ceyhan pipeline now carrying 200,000 barrels per day, below its 1 million-plus capacity.
Oil revenues fund over ninety percent of Iraq’s budget, so limited flow deepens strain after output fell to 1.4 million bpd by May, with a 2023 suspension costing the Kurdistan Regional Government $2 billion.

History

Historical Context

In 1975 Iraq and Turkey opened the 1.2-million-bpd Kirkuk-Ceyhan pipeline, financed by the World Bank to bypass the Strait of Hormuz. Repeated sabotage after 2003 and a 2023 arbitration ruling halted flows, prompting 2014 plans to double capacity and, after the 2026 Iran-War closure of Hormuz, a revival of the Kirkuk-Baniyas line and a pending contract renewal with Turkey, now carrying about 250,000 bpd.

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Iraq Revives Pipeline

Iraq, U.S. and Syria will announce reviving the Kirkuk-Baniyas pipeline—built in 1952 with 300,000-bpd capacity—at a White House meeting with President Donald Trump in July 2026.
U.S. firms TI Capital and Chevron with a Qatari partner will study a rebuild that could take two to three years.
The pipeline would let Iraq export oil via the Mediterranean, bypassing the Strait of Hormuz where Iran charges crypto tolls $2 million per supertanker.

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